i. Definition of a Bank’s Customer in Banking Law Terms

In Ghanaian banking law, the term “customer” is not explicitly defined in the Banking Act, 2004 (Act 673), as amended by Act 738 of 2007, or in subsequent legislation like the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930). However, drawing from common law principles adapted to the Ghanaian context, a person becomes a bank’s customer when there is an established contractual relationship involving banking services, typically through the opening of an account.

Key elements that constitute a person as a customer include:

• Account Relationship: The individual or entity must have an account with the bank, such as a current, savings, or deposit account. A mere inquiry or one-off transaction, like cashing a cheque without an account, does not suffice. This is supported by case law such as Great Western Railway Co. v London and County Banking Co. Ltd [1901] AC 414, where it was held that occasional transactions without an account do not create a customer relationship.
• Habitual or Regular Dealing: There should be a course of dealing in the nature of banking business. Sir John Paget, in his seminal work on banking law, emphasized that a single transaction might not establish customer status unless it leads to ongoing banking relations. In the Ghanaian context, this aligns with practical operations at banks like GCB Bank or Ecobank Ghana, where customer onboarding involves KYC (Know Your Customer) processes under BoG directives to ensure ongoing relationships.
• Banking Nature of Transactions: The dealings must pertain to core banking activities, such as deposits, withdrawals, or credit facilities. For instance, in Commissioners of Taxation v English, Scottish and Australian Bank Ltd [1920] AC 683, the Privy Council noted that even the intention to open an account could initiate the relationship.
• Frequency and Continuity: Some regularity is expected, though not strictly quantified. In Woods v Martins Bank Ltd [1959] 1 QB 55, the court considered advice given before account opening as part of the relationship, highlighting flexibility.
• Legal Entity Status: Customers can be individuals, partnerships (under the Incorporated Private Partnerships Act, 1962 – Act 152), companies (under the Companies Act, 2019 – Act 992, replacing Act 179), or other entities. In Ghana, post the 2017-2019 banking cleanup, BoG emphasized robust customer verification to prevent issues seen in collapsed banks like UT Bank, where poor governance led to fictitious accounts.

Practically, in Ghana, becoming a customer involves compliance with BoG’s Anti-Money Laundering (AML) directives and the Payment Systems and Services Act, 2019 (Act 987) for digital accounts. For example, during the 2022-2024 DDEP, banks like Stanbic Bank Ghana had to manage customer relationships carefully to maintain trust amid debt restructuring impacts.

This lack of statutory definition allows flexibility but requires banks to rely on case law and BoG guidelines for risk management, ensuring relationships are not formed with high-risk entities without due diligence.

ii. Five Duties a Bank Owes Its Customer

The banker-customer relationship is primarily contractual, akin to debtor-creditor, with implied duties from common law and statutes. As outlined in Joachimson v Swiss Bank Corporation [1921] 3 KB 110, and adapted in Ghanaian practice, key duties include:

1. Duty to Receive Deposits and Collect Instruments: The bank must accept cash, cheques, and bills for the customer’s account credit. In practice, this involves efficient clearing under the Ghana Interbank Payment and Settlement Systems (GhIPSS), with liability for delays as per the Bills of Exchange Act, 1961 (Act 55). For instance, during high-volume periods like post-DDEP recovery in 2023-2024, banks ensured prompt crediting to maintain liquidity.
2. Duty to Honor Payment Instructions: The bank must repay on demand via cheques or electronic transfers during business hours at the account branch, provided sufficient funds and proper mandate. Failure, as in cases of wrongful dishonor (e.g., Marzetti v Williams (1830)), can lead to damages. In Ghana, this aligns with BoG’s Cyber and Information Security Directive 2020, ensuring secure digital payments amid rising fintech adoption.
3. Duty of Secrecy and Confidentiality: The bank must not disclose customer information without consent, except under legal compulsion (e.g., court order) or public duty, as per Tournier v National Provincial and Union Bank of England [1924] 1 KB 461 and Section 131 of Act 930. Breaches, like those contributing to the Capital Bank collapse due to insider leaks, underscore this duty’s importance for trust and compliance.
4. Duty to Provide Account Information and Advice with Care: The bank must furnish statements and respond to inquiries accurately. If advice is given (e.g., on investments), it must be skillful, as in Woods v Martins Bank. In Ghana, post-2019 cleanup, BoG’s Corporate Governance Directive 2018 mandates transparent advice, especially for SMEs affected by recapitalization under Notice No. BG/GOV/SEC/2023/05.
5. Duty to Act with Reasonable Care and Skill: In all operations, including collecting cheques (as collecting banker under Act 55) or managing securities. This incorporates Basel II/III principles via BoG’s Capital Requirements Directive, emphasizing operational risk mitigation. Practical example: Access Bank Ghana’s handling of customer liens during the 2022 DDEP avoided undue influence issues by adhering to ethical practices.

These duties promote resilience and profitability by fostering long-term relationships, while non-compliance can result in BoG sanctions, as seen in the cleanup era. In modern Ghanaian banking, digital trends amplify these, requiring cybersecurity integration for ethical service delivery.